Historically, when a consumer purchased a good or service, the transaction usually involved use of currency in the form of either cash or a check. With the advent of the credit card and, more recently, the debit card, consumers have lost the tactile experience associated with making a purchase or paying bills. Instead a typical purchase is now streamlined to the point where a consumer slides a card through a machine, optionally enters a personal identification number (PIN), and approves the purchase.
Recent studies show and experts contend that while the new approach to transactions is convenient, the loss of the tactile experience of handling cash to purchase a good or service has desensitized consumers regarding the amount of money actually being spent. In turn, consumers are outspending budgets.